On July 1, 2017, Wildhorse Co. pays $ 19,500 to Blossom Company for a 2-year insurance contract. Both companies havefiscal ears ending December3 Your answer is correct. For Wildhorse Co., journalize the entry on July 1 and adjusting entry on December 31. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 19500 July 1 Prepaid Insurance 19500 Cash 4875 Dec. 31 Insurance Expense 4875 Prepaid Insurance